In its regulatory filing on Wednesday, Biocon said, “we wish to inform you that the Company has entered into an agreement for the purpose of acquisition of solar power by acquiring equity stake up to 26% in AMPYR Renewable Energy Resources Eleven Private Limited (AREREPL), a Special Purpose Vehicle formed for generation and supply of solar power.”
Bangalore-based biopharmaceutical company, Biocon to acquire a 26% stake in AMPYR Renewable Energy Resources Eleven for solar power. The transaction will cost around ₹7.50 crore. Through the acquisition, Biocon plans to enhance its renewable-based power consumption.
In its regulatory filing on Wednesday, Biocon said, “we wish to inform you that the Company has entered into an agreement for the purpose of acquisition of solar power by acquiring equity stake up to 26% in AMPYR Renewable Energy Resources Eleven Private Limited (AREREPL), a Special Purpose Vehicle formed for generation and supply of solar power.”
The company will maintain a 26% stake in AREREPL throughout the term of the Power Purchase Agreement to maintain captive status as per Electricity Act, Share Purchase/ Subscription Agreement, and Shareholders Agreement.The subscription of equity shares of AREREPL will be on a fully diluted basis and in one or more tranches.
Notably, the acquisition doesn’t fall within the purview of related party transactions.
AREREPL was incorporated on April 13, 2021, which will engage in the business of power generation and will develop a 30 MWac solar power plant in Benkanhal Village Kanakagiri Taluk, Koppal District of Karnataka.
On BSE, Biocon shares closed at ₹310.30 apiece down by 1.87%. At the closing price, the company’s market valuation stands at ₹37,254.62 crore.
In the FY22 audit report, Biocon announced its aim to increase the share of its renewable energy consumption through a combination of wind and solar power. It said on April 28, “Towards this objective, we commenced sourcing solar power during the quarter to add to the wind power.”
For the full-year FY22, Biocon delivered a net profit of ₹648 crore down by 12% from ₹740 crore. Meanwhile, its revenue from operations climbed by 15% to ₹8,184 crore in FY22 against ₹7,143 crore. EBITDA increased by 14% to ₹2,183 crore in FY22 compared to ₹1,907 crore in FY21. Furthermore, FY22 EBITDA Margins were at 26%.
Biocon, publicly listed in 2004, is an innovation-led global biopharmaceutical company committed to enhancing affordable access to complex therapies for chronic conditions like diabetes, cancer, and autoimmune diseases.
Biocon is one of the biggest global suppliers of complex small-molecule APIs and a leading biosimilars player, with a wide portfolio of insulins, monoclonal antibodies and conjugated recombinant protein.
